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Optimistic Labor Market Outlook Boosts Consumer Spending

Consumer confidence is rising again. In the July survey produced by the State Secretariat for Economic Affairs, consumers were significantly more positive on prospects for the economy and the labor market compared with the April survey. This is mainly due to the positive trend on the labor market since mid-2016. In July 2017 around 5,000 fewer persons were registered as unemployed with the regional employment centers versus the same month last year. The first half of 2017 showed clear evidence that more widespread job security is feeding through to consumer spending: Amid a broad-based recovery, Swiss retail sales have stopped falling for the first time since 2014. The revival of consumer confidence also led to more hotel overnight stays on the part of Swiss tourists, with the total number of stays up around 2% in the first half of the year. All in all, Swiss consumers now seem more willing to spend money again.